George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Not a bad day, well done all RKH holders too. Looks like that company might be the best bet now that Sea Lion is considerably more likely to get the go ahead.
Let’s hope Amy’s Wong...pretty sure premier said last half year results that they only do reserve upgrades at year end. Not entirely sure why.
Sankeys, if premier are going for export credit, are warrants/dilution a genuine possibility? I must admit I don’t know much about this, but I’d assumed it was going to be straight up debt plus vendor financing.
My last two buys here have been in the 50s. If it goes that low it’s a no brainer buy.
Having 43% of H2 2019 oil hedged at $69 is starting to look like a master stroke by PMO.
I’m a little amazed this hasn’t gone into the 60s personally with oil in the 58s. Holding up very well. Anyone else see a few decent opportunities with the oil fall? Starting to get tempted by rkh, tlw and BP.
SBB1, most of PMOs revenue comes from oil sales. Furthermore, most of PMOs gas production is not sold at U.K. prices. So, until Tolmount comes online, UK gas prices, while of course not irrelevant, are a small piece of the picture overall.
I’m less bullish than most on here with regards to the value of our stake in Zama, but if we don’t get more than $290m I’ll be amazed. Barclays must have calculated that before the appraisal results.
I reckon open at 72-73p recovering to 74-75p by close. Could be some bargains tomorrow across the sector, glad I’m partly in cash, makes a nice change.
Do sharks eat shrimp?
Your finger crossing worked.
That Forbes article basically revolves around the author choosing, with no logical basis, to extend the trend down to zero or lower production growth, in a graph he couldn’t even be bothered to double check to catch the glaring mistake on the y axis label.
Hate to break it to you, but shale is only just starting to stretch it’s legs. It’ll keep growing for many years, even if it’s not at break-neck speed the whole time.
Shale boom far from over. Expect tight oil to dominate annual non-opec supply additions for the next 5-6 years. It’s just a shame that they’ll make barely any money while keeping a lid on oil prices for the rest of the industry.
Tarth, we completely agree on that. Selling Zama and developing SL is definitely the logical choice for the company. I just hope the amount they get if it were to be sold doesn’t disappoint some here.
Yep, fiscals in Mexico are, in a word, terrible. Plus political environment doesn’t fill me with confidence at all. Add in the fact that probably a quarter of the field is off block, with Pemex majorly behind schedule with their appraisal well, makes me think Premier should sell, sell, sell.
Tarth, could you provide a little breakdown for how you’re coming up for your Zama valuation numbers? Cheers.
Jay, do you have that setup like an automatic signature, or are you typing it out each time?
Demand isn’t falling. Demand growth rate is falling, which is a very different thing.
Ferret, you take the broken record saying to a whole new level. Might be bearable if you were right.
Well, we know that DEA paid $500 million or so for 40% of Zama plus a few other blocks. That would put PMOs share at circa $300 million, but that was before the recent appraisal and resource upgrade. Might be worth something like $400-$600 million now?
Steal,
Apologies if I wasn’t clear, I was talking about the chances of the Tolmount East well, which is stepping out away from the main Tolmount accumulation. This is where they’ve already sanctioned the first development and is, as you say, proven. That said, it’ll still have a fair range of uncertainty when it comes to volumes and deliverability.